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IEX trades highest-ever electricity volume in March, average spot price at Rs 4.06/unit

Spurred by the increasing demand for electricity across various states, the electricity market at IEX achieved an all-time high volume of 8,248.52 MU in the month of March

IEX trades highest-ever electricity volume in March, average spot price at Rs 4.06/unit
IEX trades highest-ever electricity volume in March, average spot price at Rs 4.06/unit
  • Exchange culminates FY21 with highest-ever yearly electricity volume of 73,941 MU achieving 37 percent YoY growth.

  • Power market clearing price at Rs 2.82 per unit in FY21 sees 6.2 percent YoY decline 

New Delhi: Spurred by the increasing demand for electricity across various states, the electricity market at Indian Energy Exchange (IEX) achieved an all-time high volume of 8,248.52 MU in the month of March, surpassing all the previous milestones. The average monthly price at Rs 4.06 per unit in the day-ahead market during the month saw a 20 percent month-on-month increase. “The increase in price was mainly due to the increase in demand for electricity during the month due to sharp rise in temperature, revival of economic and commercial activities,” said IEX in an official statement on Tuesday.

The robust volumes led to a 92 percent year-on-year (YoY) growth in the electricity market during the month. According to the power demand data published by the National Load Dispatch Center, the national peak power demand touched 186 GW, seeing a 9 percent YoY growth while the power consumption grew 23 percent YoY. The market faced transmission congestion on the inter-state transmission network due to which 24 MU was lost during the month, representing 0.03 percent of total traded volume.

Cumulatively, for the fiscal year 2021, the exchange market performed spectacularly well despite the CoVID-19 induced lock-down which resulted in significant reduction in the demand for electricity in the country in the first two quarters of the year. The electricity market achieved all time high volume of 73,941 MU during the year leading to 37.2 percent YoY growth. The new market segments introduced during fiscal year 2021 — the real time market as well as the green market — made 14 percent contribution to the volume traded during the year. As per the NLDC data for fiscal year 2021, national peak demand for electricity at 190 GW saw 3.5 percent growth, while electricity consumption at 1,281 BU was down 0.6 percent YoY.

How did day-ahead, term-ahead & real-time market fare?

During March, the day-ahead market traded 6,549 MU volume, recording a significant 65 percent YoY growth. For the fiscal year 2021, the day-ahead on the exchange, traded 60,416 MU and registered 23 percent YoY growth. The day-ahead market saw ample availability of power during the year with sell-bids at 1.94X of the cleared volume.

Even though the power consumption over the last six months revived significantly accompanied by the growth in the industrial and economic activities across the country, the average yearly price for the Day-ahead market at Rs 2.82 during the fiscal saw 6.2 percent YoY decline.

The term-ahead market comprising intra-day, contingency, daily and weekly contracts traded 234 MU during the month. Cumulatively, for the fiscal year 2021, the term-ahead market traded a total of 3,272 MU, said IEX.

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The real-time market continued its splendid performance during March and crossed 1BU benchmark for the fourth consecutive month. The market saw the highest-ever monthly volume of 1,414 MU with 26 percent month-on-month growth. It also recorded the highest single day volume of 63 MU on March 23. With sell-side bids at 1.8X of cleared volume, the market continued to have ample availability of power. 

Green Market

The Green Term Ahead Market traded a volume of 51 MU during the month comprising 21 MU in the solar segment and 30 MU in the non-solar segment. A total of 24 participants participated during the month with distribution utilities from Haryana, Bihar, Uttar Pradesh, West Bengal, New Delhi, Karnataka, Telangana, and Maharashtra, among others, as key participants. The market has been enabling distribution utilities, industrial consumers, and green generators to buy and sell green power while also supporting them in fulfilling their Renewable Purchase Obligation (RPO) targets in the most competitive way. The market has cumulatively traded 786 MU volume since its launch on August 21, 2020.

Renewable Energy Certificates (RECs)

The REC trading session which was scheduled on March 31 did not take place due to the stay order from APTEL in response to the petitions filed by a few Renewable Energy Associations against the CERC order dated June 2020 regarding revision in the floor and forbearance prices of REC. During fiscal year 2021, the renewable energy certificate market cumulatively traded 6.97 lakh certificates. 

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